The regulatory aspects of short-term rentals in the EU

This in-depth analysis, authored by Claire Colomb, a Professor of Land Economy at the University of Cambridge, UK, explores the regulatory aspects of short-term rentals (STRs) in the European Union (EU). It was commissioned by the European Parliament's Special Committee on the Housing Crisis to address the impacts of STRs on affordable housing access across Europe. The publication aims to provide essential data and insights into how various regulations affect the housing market and the role that EU legislation plays in shaping these regulations.

Short-term rentals have surged in popularity due to rising tourism and the advent of digital platforms, leading to significant changes in housing dynamics across Europe. The analysis reveals that a considerable portion of STRs is now managed by professional operators rather than individual homeowners, which has implications for long-term rental availability. In cities with tight housing markets, such as Barcelona and Paris, this shift has resulted in a decrease in the supply of long-term rentals and increased housing prices, contributing to the displacement of residents.

The document discusses the variety of STR regulations in the EU, highlighting that local governments have adopted different approaches based on socio-economic conditions and tourism patterns. Some cities, like Berlin and Barcelona, have implemented stricter regulations to control STR growth, while others have taken a more laissez-faire approach. The effectiveness of these regulations often hinges on data transparency and the capacity of local authorities to monitor compliance.

The implementation of STR regulations faces several challenges, including a lack of precise data about STR operations and insufficient resources for enforcement. Many digital platforms have been reluctant to share data with public authorities, complicating efforts to assess the impact of STRs on local housing markets. The analysis emphasizes the need for improved data collection, which is supported by the upcoming EU Regulation on Data collection and sharing relating to STR services.

The EU's influence on STR regulations primarily stems from its legal framework, including the E-Commerce Directive and the Services Directive. These regulations shape how member states can control STRs and influence digital platforms. The Court of Justice of the European Union (CJEU) has clarified that measures aimed at combating the housing crisis can justify local STR regulations, presenting a potential pathway for cities to implement necessary controls without infringing EU laws.

The analysis concludes that while STRs can provide additional income for homeowners, they often exacerbate housing shortages and affordability issues in urban areas. Stricter regulations have shown some effectiveness in reducing the number of STRs, particularly professional listings. However, the document calls for a balanced approach that considers the need for tourism alongside the necessity of maintaining affordable housing stocks. Policymakers are urged to closely monitor the implementation of new regulations and ensure that they are effective in achieving desired housing outcomes.